The Fed has so far saved the stock market from crashing after SVB: Yardeni

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The Fed has so far saved the stock market from crashing after SVB's implosion by injecting billions to backstop deposits, market veteran Ed Yardeni says

– ensuring banks have enough money on hand in event of a deposit run, which led to SVB's collapse in early March.is back," Yardeni said, comparing the BTFP to the central bank's practice of lowering interest rates in order to buoy stock prices."Though it is aimed at backstopping the banks this time, which indirectly supports the stock market. The question is whether that will do the trick to stop a credit crunch and a stock market crash. The jury is out, but so far so good.

That's the sharpest increase since the 2008 recession, which is"disturbing," Yardeni said. But in the week ending April 5, volumes fell $31.6 billion, a sign liquidity stress is starting to abate. Bank deposit outflows across all commercial banks in the US also fell $107 billion in the seven days ending March 29.

 

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